INVESTING:

What are the main reasons businesses choose to invest?

To achieve profit through investments such as machinery, technologies, and workforce programs.

What goals do individuals typically aim to achieve by investing?

Goals can include extra income, major purchases, funding holidays or education, and ensuring a comfortable retirement.

What is a term deposit?

A savings account where money is locked for a set term at a fixed interest rate, offering a safe return.

What do cash management accounts offer?

Higher interest than savings accounts, accessible anytime, usually requiring a high minimum balance.

What is the advantage of online investment accounts?

High-interest rates with low fees, but limited access, ideal for those comfortable with online banking.

What benefits do shares provide to investors?

Ownership in a company, potential dividends, capital growth, and flexibility for trading.

What is a managed fund?

A pooled investment where money from many investors is managed by professionals and diversified across assets.

What is superannuation in the context of investments?

A compulsory savings account for retirement funded by employer contributions.

What are debentures?

Loans to a company with a fixed interest rate and long-term repayment, considered less risky due to provided security.

What are unsecured notes?

Similar to debentures but without security, offering higher interest rates due to increased risk.

Define cryptocurrency.

Digital currencies like Bitcoin that operate without government or bank control, characterized by high volatility.

What is the relationship between risk and return in managed funds?

Moderate risk and return, with professional management and diversification.

How does property investment balance risk and return?

While it offers higher long-term returns, it also entails higher risks due to market fluctuations.

What defines high-risk, high-return investments?

Investments like shares that have significant price fluctuations but can yield substantial gains over time.

What role does superannuation play in investment risk?

It is a lower risk long-term investment designed for retirement.

What does a diversified investment portfolio help mitigate?

Reduces the impact of losses in one area while maximizing potential returns across various investments.

What are ethical investments?

Investments made in companies whose practices align with an investor's personal values.

What are some key ethical concerns investors consider?

Types of products, unsafe working conditions, child labor exploitation, and environmental impacts.

What is the primary role of the financial services industry?

To provide tools, guidance, and support for managing financial resources effectively.

How does the financial services industry assist individuals?

By helping them set financial goals, investment planning, and maximizing superannuation.

What are the responsibilities of financial advisers?

They must make inquiries into consumers' financial situations and assess the suitability of credit contracts.

What does ASIC stand for?

Australian Securities and Investment Commission.

What is the main function of ASIC?

Regulates financial services and protects consumers, investors, and creditors.

What kinds of services do banks provide?

Savings accounts, loans, mortgages, credit cards, and personal financial advice.

What distinguishes credit unions from banks?

Credit unions are member-owned institutions that focus on members' financial well-being.

What are the essential functions of building societies?

They historically helped members buy homes and now provide services similar to banks.

How does work contribute to wellbeing?

By providing disposable income, access to healthcare, and a means to secure future financial stability.

What is the impact of taxation on society?

Taxes fund essential services like education, healthcare, and social welfare programs.

What are the different types of employment?

Full-time, part-time, casual, self-employed, working from home, apprenticeships, and voluntary work.

How is a full-time job defined?

Ongoing employment with 38+ hours per week and full entitlement benefits.

What are pro-rata entitlements in part-time employment?

Entitlements given based on the number of hours worked in proportion to full-time benefits.

What is casual employment?

Hourly or 'as needed' employment with no fixed hours or benefits.

What are apprenticeships?

Work-integrated learning programs combining employment with vocational training.

How have employment patterns changed in recent years?

A shift from primary and secondary sectors to an increasing focus on tertiary sectors (services).

What is the sharing economy?

Economic activity where individuals share access to goods/services through platforms like Uber and Airbnb.

How has technology impacted future job requirements?

Increased need for skills in programming, data analysis, and cybersecurity due to automation.

What are some expected future changes in workplaces?

Increased flexibility, higher education expectations, and greater gender equality.

Define gig-based work.

Short-term, freelance work often facilitated by digital platforms.

What is meant by lifelong learning in the context of changing job markets?

The ongoing need for workers to continuously upskill to remain competitive.

What is the importance of self-esteem in the context of work?

Work provides personal satisfaction and a sense of belonging, enhancing overall well-being.

What does the term 'redistribution of income' refer to?

The way taxes collected from workers fund essential public services and welfare.

What types of income can individuals receive from employment?

Wages, salaries, commissions, profits, and dividends.

How has the retail sector grown relative to other industries?

Has seen slower growth compared to the rapidly increasing healthcare sector.

What is the role of financial advisers in investment planning?

Advisers maximize returns and create strategies for meeting clients' financial needs.

What is an example of a negative ethical concern in businesses?

Exploitation of child labor or unsafe working conditions.

What drives the need for critical thinking and creativity at work?

Technology handling routine tasks, requiring workers to focus on higher-order thinking.

What benefits do flexible work arrangements offer?

Improved work-life balance and potentially increased productivity.

What impact does government expenditure have on society?

Funds vital services and supports social welfare programs benefiting individuals and the community.

Why might ethical investments be increasingly popular?

Growing awareness of corporate practices affecting society and the environment.

What is one major outcome of globalisation on employment?

Increased job market competition and remote work opportunities.

What is the significance of diversification in an investment portfolio?

It helps manage risk and increases the chances of achieving a favorable return.

What is a high-risk investment?

An investment with greater potential returns but also higher chances for loss.